Accrued Interest
Accrued interest is the interest on a fixed-income security that has accumulated since the last coupon payment date but has not yet been paid to the holder. In a trade, the buyer often pays the seller the accrued interest, and the price commonly shown as the clean price is combined with accrued interest to form the dirty price.
Example: In a trade that occurs between coupon dates, the buyer pays the seller the accrued interest for the days since the last coupon date, and the total price equals the clean price plus accrued interest.
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